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As long as there continues to be succesful live service games, they will never stop attempting to make new ones, because the succesful ones are the most profitable forms of entertainment ever devised.
Of course there is only room for a limited amount of live service games on the market (since gamers only have one life to waste on them), so most of them will fail, and many of them even before leaving the drawing board it seems.
This is an excellent point. An organisation the size of Sony is simply incapable of not attempting a live service hit as long as they have the resources to do so.
A smaller player can pursue a strategy where they gain profits from their (somewhat specialized) segement of the market. Sony lacks that flexibility due to their size.
Yep, they can make a bunch of games that costs them hundreds of millions to make it they manage to make one that brings in billions in profit… That’s what we call gambling.
Most companies call it R&D.